Wiener stadtwerke geschaeftsbericht 2008 englisch

“BRINGING THE CITY TO LIFE“

CONSOLIDATED FINANCIAL STATEMENTS

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

1

KEY PERFORMANCE INDICATORS

KEY PERFORMANCE INDICATORS KEY FIGURES & MANAGEMENT RATIOS Consolidated turnover

EUR m

2008

±%

2007

2006

2,767.8

15.4

2,397.8

2,378.5

Wiener Stadtwerke Corporate Management

EUR m

24.0

5.7

22.7

22.2

Turnover – Wien Energie 1)

EUR m

2,258.7

15.5

1,956.1

1,976.0

Turnover – Wiener Linien

EUR m

416.9

6.4

391.9

367.3

Turnover – Bestattung Wien

EUR m

32.0

0.0

32.0

31.3

Turnover – Beteiligungsmanagement

EUR m

0.8

0.0

0.8

0.7

Consolidated result on ordinary activities

EUR m

8.3

-81.9

45.9

46.0

Consolidated result for the year

EUR m

9.6

-80.8

50.0

47.5

Balance sheet total

EUR m

12,247.2

5.1

11,653.5

11,433.7

%

40.1

0.4

40.5

38.9

Capital investments

EUR m

748.0

-9.5

826.9

744.0

Depreciation and amortisation

EUR m

469.4

1.5

462.3

463.7

Equity ratio

Capex ratio

%

Average headcount 2)

OPERATIONAL FIGURES Electricity sales

3)

27.7

7.4

35.1

31.3

15,104

4.2

14,496

14,334

2008

±%

2007

2006

GWh

8,726.9

-0.1

8,733.9

9,030.4

3)

GWh

8,623.6

20.7

7,144.8

9,650.5

District heating sales

GWh

5,435.2

19.9

4,533.0

5,755.4

Gas sales

Passengers

millions

803.6

1.3

793.0

772.1

Funeral services

number

17,955

1.8

17,630

18,502

1) 2) 3)

Financial year from 1.10. to 30.9.

Excluding paternity leave, trainees and those on national service Sales corporations

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

2

CONTENTS

CONTENTS

EUR 2.8BN

3 THE EXECUTIVE BOARD

CONSOLIDATED TURNOVER OF EUR 2.8BN – EQUIVALENT TO AN INCREASE OF 15.4% COMPARED TO THE PRIOR YEAR

4 GROUP STRUCTURE 5 CONSOLIDATED FINANCIAL STATEMENTS 13 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS BREAKDOWN OF CONSOLIDATED TURNOVER BY BUSINESS DIVISION IN %

DEVELOPMENT OF TURNOVER IN EUR MILLION

2006

2,378.5

ENERGY

18%

TRANSPORT

2% 2007 2008

2,397.8

30 SERVICE DETAILS

80%

FUNERAL SERVICES

2,767.8

350

MORE THAN APPRENTICES ARE CURRENTLY EMPLOYED BY WIENER STADTWERKE

UP TO

800,000 PASSENGERS PER DAY WERE TRANSPORTED BY WIENER LINIEN DURING THE EURO 2008 EVENT

15,104 PERSONNEL WORKING FOR WIENER STADTWERKE

WIENER STADTWERKE PLANS TO INVEST

EUR 4.2BN IN ADDITIONAL INFRASTRUCTURE OVER THE NEXT FIVE YEARS

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

3

THE EXECUTIVE BOARD

THE EXECUTIVE BOARD OF WIENER STADTWERKE HOLDING AG (from left to right) Helmut Miksits, Member of the Board of Management Gabriele Domschitz, Member of the Board of Management Martin Krajcsir, Vice Chief Executive Officer Gabriele Payr, Chief Executive Officer

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

4

GROUP STRUCTURE

VIENNA IN GOOD HANDS Wiener Stadtwerke and its affiliated companies are proud to be part of this city and to be able to play an active role in its development, being one of the largest employers in the region, as well as a key economic and infrastructure company which focuses on commercial, ecological and social objectives. We are a company with a long tradition of contributing to the quality of life in Vienna. In doing so, we see ourselves as a partner to Vienna’s population and economy in every area of daily life. It is not without good cause that people refer to us as the lifeblood of the City of Vienna, both visible and invisible.

CITY OF VIENNA

WIENER STADTWERKE HOLDING AG 100 % VERBUND PORR TEERAG-ASDAG

WIEN IT

11.51 2.76 47.19

100

WIENCOM

100

GWSG

100

VERMÖGENSVERWALTUNG

100

WIENER LOKALBAHNEN

99.94

WIENER LINIEN

100

WIEN ENERGIE

WIENER LINIEN VERKEHRSPROJEKTE

100

ENERGIEALLIANZ AUSTRIA

45

E&T

45

100

BESTATTUNG WIEN

100

BURGENLAND HOLDING

DIEBESTATTUNG

100

WIEN ENERGIE STROMNETZ

100

SARGERZEUGUNG ATZGERSDORF

100

WIENSTROM

100

FRIEDHÖFE WIEN

100

B-S ENERGIA

100

KREMATORIUM WIEN

100

WS RENEWABLE ENERGY HYDRO

100

DRUCKEREI LISCHKAR

63.64

WINDNET WIEN ENERGIE VERTRIEB

BETEILIGUNGSMANAGEMENT

100

PARKRAUM WIEN MANAGEMENT

100

STPM

99.9

IWS

44

IMPORTKOHLE

33

TELEREAL

25

6.59

85 66.67

PAMA-GOLS

50

TOPLAK

50

POLSKA SILA WIATRU

50

EASTERN EUROPEAN HYDRO POWER

49

ENERGIEPROJEKT ZURNDORF

40

KRAFTWERK NUSSDORF

33.33

BIOMASSEKRAFTWERK

33.33

VERBUND AUSTRIAN THERMAL-POWER

3.06

VERBUND AUSTRIAN HYDRO-POWER

2.94

VERBUND

1.17

FERNWÄRME WIEN BIOMASSEKRAFTWERK GEOTHERMIEZENTRUM ASPERN WIEN ENERGIE GASNETZ

100 33.33 80 100

WIEN ENERGIE ERDGAS MOBIL

100

WIEN ENERGIE SPEICHER

100

AUSTRIA FERNGAS in Liquidation

23.75

WIEN ENERGIE VERTRIEB

33.33

ECONGAS

15.7

ENERGIECOMFORT

100

C.E.U.

100

AUSSEER FERNWÄRME

100

HAUSCOMFORT

100

HUNGARY ENERGETIK

100

SPRAVBYTKOMFORT

55

FERNWÄRME KÖSZEG

50

TT ENERGIE

50

ORTSWÄRME SEEFELD

50

ORTSWÄRME OBERSTAUFEN

50

BYTKOMFORT

49

ORTSWÄRME GRÄN

24.86

ORTSWÄRME TANNHEIM

24.86

As at 31 December 2008

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

5

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET (1/2) at 31 December 2008

ASSETS IN EUR

31.12.2008

31.12.2007

I. Intangible assets

175,774,848

176,524,597

1. Licences, industrial property rights and similar rights including associated licences

146,885,439

160,562,399

A. FIXED ASSETS

2. Goodwill

2,158,668

321,652

26,730,742

15,640,546

II. Tangible assets

8,450,211,387

8,166,247,720

1. Land, land-based rights and buildings, including buildings on non-owned land

4,239,264,552

3,742,872,103

2. Plant and equipment

3,297,720,817

3,018,105,150

159,488,115

150,760,021

3. Prepayments

3. Other equipment, furniture and fixtures 4. Prepayments and plant under construction

753,737,903

1,254,510,446

2,065,937,471

1,914,461,361

1. Shares in affiliated companies

62,749,358

31,885,525

2. Lendings to affiliated companies

11,244,739

3,833,589

III. Financial assets

3. Investments in associated companies 4. Shareholdings 5. Lendings to companies in which shares are held 6. Long-term financial investments

59,369,133

48,909,204

543,380,724

499,330,230

1

1

1,369,797,113

1,316,883,450

7. Other lendings

19,396,402

13,619,361

Total fixed assets

10,691,923,706

10,257,233,678

I. Inventory

98,538,738

90,955,026

1. Raw materials and supplies

97,587,745

90,124,845

844,445

760,683

B. CURRENT ASSETS

2. Finished goods and merchandise

106,548

69,498

II. Receivables and other assets

3. Work in progress

529,517,476

442,612,354

1. Accounts receivable – trade

282,743,721

204,754,474

2. Receivables due from affiliated companies of which trade EUR 817,229/prior year: EUR 10,056,322

6,697,631

14,192,684

3. Receivables due from companies in which shares are held of which trade EUR 154,615/prior year: EUR 143,628

2,171,670

3,885,666

237,904,455

219,779,531

III. Securities and shareholdings

9,957,273

137,466,326

1. Other securities and shareholdings

9,957,273

137,466,326

4. Other receivables and assets

IV. Cash in hand, cheques and bank balances

349,516,271

238,838,054

Total current assets

987,529,758

909,871,760

C. ACCRUED INCOME

567,700,476

486,420,692

of which shortfall of provisions for pensions

356,398,177

373,034,052

12,247,153,939

11,653,526,129

778,471,957

651,951,230

Total Assets

Contingent liabilities

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

6

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET (2/2) at 31 December 2008

LIABILITIES AND EQUITY IN EUR

31.12.2008

31.12.2007

500,000,000

500,000,000

II. Capital reserves

3,295,049,683

3,206,394,432

III. Retained earnings

1,053,254,831

950,319,976

IV. Minority interests

18,555,220

18,223,868

V. Profit/loss for the year of which carried forward: EUR 0/prior year: EUR 0

42,079,675

48,332,880

Total shareholder’s equity

4,908,939,408

4,723,271,156

B. PROVISIONS

2,591,075,048

2,520,191,553

44,406,949

43,172,959

2,176,094,762

2,164,436,584

24,108

375,249

370,549,229

312,206,761

1,206,100,101

1,044,219,395

31,776,347

64,000,462

2. Liabilities due to banks

372,940,313

229,988,544

3. Prepayments received

10,641,320

18,130,270

431,946,354

400,139,504

3,468,120

3,023,345

A. SHAREHOLDER’S EQUITY I. Capital stock

1. Provisions for severance payments 2. Provisions for pensions 3. Provisions for taxes 4. Other provisions

C. LIABILITIES 1. Bonds issued

4. Accounts payable – trade 5. Payables due to affiliated companies of which trade EUR 3,329,522/prior year: EUR 2,910,325 6. Payables due to companies in which shares are held of which trade EUR 1,421,606/prior year EUR 1,208,072

1,488,832

1,277,396

353,838,815

327,659,874

Total borrowed capital

3,797,175,150

3,564,410,948

D. ACCRUED EXPENSES AND DEFERRED INCOME

3,541,039,381

3,365,844,025

Total equity and liabilities

12,247,153,939

11,653,526,129

Other contingent liabilities

721,474,996

639,702,609

Other liabilities

498,791,006

348,308,583

7. Other liabilities of which taxes: EUR 64,189,002/prior year: EUR 53,492,412 of which social security contributions: EUR 5,238,623/ prior year: EUR 4,198,136

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

7

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED PROFIT AND LOSS ACCOUNT from 1 January to 31 December 2008 IN EUR 1. Turnover 2. Changes in inventory of finished and semi-finished goods and accrued income 3. Other own work capitalised 4. Other operating income

2008

2007

2,767,771,774

2,397,755,781

363,782

143,166

49,449,715

49,452,776

566,406,727

551,412,303

a) Income from the disposal of assets excluding financial assets

17,620,473

24,216,371

b) Income from the reversal of provisions

11,086,694

18,243,417

537,699,560

508,952,514

c) Other income 5. Cost of materials and services purchased a) Cost of materials b) Cost of services purchased

-1,487,757,806

-1,211,047,218

-1,410,600,385

-1,146,114,665

-77,157,421

-64,932,553

-954,828,406

-935,521,961

a) Wages

-382,925,815

-358,536,002

b) Salaries

-265,178,443

-247,139,281

6. Personnel expenses

c) Expenses for severance payments and pension fund contributions

-5,069,219

-6,610,292

d) Payments for pensions

-170,663,091

-200,426,711

e) Statutory social security contributions and remuneration-based charges and mandatory contributions

-127,629,810

-119,613,876

f) Other social expenditure

-3,362,028

-3,195,799

7. Depreciation and amortisation of tangible and intangible assets of which impairments in accordance with Section 204, Para. 2, UGB: EUR 0/prior year: EUR 4,314,133

-469,368,780

-462,320,348

8. Other operating expenses

-498,096,807

-467,851,234

a) Taxes not included under Position 19 b) Other expenses 9. Sub-total of Positions 1 to 8 (EBIT) 10. Income from shareholdings of which from affiliated companies: EUR 1,029,412/prior year: EUR 3,605,915 11. Income from other securities and loans of financial assets of which from affiliated companies: EUR 35,262/prior year: EUR 11,235 12. Other interest and similar income of which from affiliated companies: EUR 74,710/prior year: EUR 7,620 13. Income from the disposal and write up of financial assets

-42,310,242

-45,156,292

-455,786,566

-422,694,942

-26,059,801

-77,976,735 40,163,783

54,451,464 72,804,919 44,750,204 19,789,686 38,695,494 1,790,483

8,522,300

22,815,601

12,629,973

15. Expenses associated with financial assets and available for sale securities of which write downs: EUR 90,696,126/prior year: EUR 7,709,642 of which expenses from affiliated companies: EUR 3,894/prior year: EUR 144,828

-91,653,754

-8,413,149

16. Interest and similar expenses

-36,518,768

-21,642,922

34,330,725

123,854,590

18. Result on ordinary activities

8,270,923

45,877,855

19. Taxes on income and earnings

1,632,221

4,841,293

20. Profit/loss after taxes

9,903,144

50,719,149

14. Income/expenses from investments in affiliated companies

17. Sub-total of Positions 10 to 16 (Financial result)

21. Minority interests 22. Consolidated profit/loss after taxes 23. Release of capital reserves 24. Allocations to retained earnings 25. Profit/loss for the period

-331,352

-753,854

9,571,792

49,965,294

97,981,830

75,537,188

-65,473,948

-77,169,602

42,079,675

48,332,880

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

8

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED CASH FLOW STATEMENT from 1 January to 31 December 2008 IN EUR

2008

2007

9,903,144

50,719,149

2. Cash-neutral expenses and income

417,584,726

316,416,839

3. Reclassifications

-35,043,215

-94,443,770

4. Cash flow from earnings

392,444,655

272,692,217

5. Change in working capital

-1,558,759

75,900,518

3,563,938

19,232,937

1. Profit/loss after taxes

6. Change in operating cash flow (long-term) 7. Cash flow from operating activities (1)

394,449,834

367,825,673

-546,528,403

-321,600,710

9. Cash flow from financing activities (3)

262,756,785

17,300,759

10. Change in cash and cash equivalents

110,678,217

63,525,722

238,838,054

175,172,332

0

140,000

349,516,271

238,838,054

8. Cash flow from investment activities (2)

Balance at 1.1.2008 Change in scope of consolidation Balance at 31.12.2008

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

9

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (1/2) from 1 January to 31 December 2008 IN TEUR Balance at 1.1.2007

CAPITAL STOCK

CAPITAL RESERVES

RETAINED REVENUES

500,000

3,053,904

851,453

Carried forward

20,912

Profit/loss for the year Dividends paid Differences due to consolidated subsidiaries and affiliated companies

786

Changes in scope of consolidation Changes in reserves

152,490

77,170

Balance at 31.12.2007

500,000

3,206,394

950,320

Balance at 1.1.2008

500,000

3,206,394

950,320

Carried forward

37,458

Profit/loss for the year Dividends paid Differences due to consolidated subsidiaries and affiliated companies

3

Changes in scope of consolidation

9,369

Changes in reserves Balance at 31.12.2008

500,000

79,286

65,474

3,295,050

1,053,255

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

10

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (2/2) from 1 January to 31 December 2008 IN TEUR Balance at 1.1.2007

MINORITY INTERESTS

PROFIT/LOSS FOR THE YEAR

TOTAL EQUITY

17,425

29,564

4,452,346

Carried forward Profit/loss for the year

754

Dividends paid

-20,912

0

49,965

50,719

-8,652

-8,652

Differences due to consolidated subsidiaries and affiliated companies Changes in scope of consolidation

786 45

Changes in reserves Balance at 31.12.2007

18,224

Balance at 1.1.2008

18,224

Carried forward Profit/loss for the year

331

Dividends paid

45 -1,632

228,027

48,333

4,723,271

48,333

4,723,271

-37,458

0

9,572

9,903

-10,875

-10,875

Differences due to consolidated subsidiaries and affiliated companies

3

Changes in scope of consolidation

9,369

Changes in reserves Balance at 31.12.2008

18,555

32,508

177,268

42,080

4,908,939

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

11

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN TANGIBLE AND INTANGIBLE ASSETS (1/2) for the 2008 financial year

IN EUR

COST OF ACQUISITION 1.1.2008

ADDITIONS 2008

ADDITIONS TO SCOPE OF CONSOLIDATION 2008

DISPOSALS RECLASSIFICATIONS 2008 2008

I. Intangible assets 1. Licences, industrial property rights and similar rights including associated licences 2. Goodwill 3. Prepayments

475,239,543

2,186,953

286

713,606

4,634,688

748,417

1,919,650

56,813

0

0

15,640,546

15,737,415

0

2,182,666

-2,464,554

491,628,507

19,844,018

57,099

2,896,272

2,170,134

6,154,996,895

116,018,312

97,177

11,696,930

540,320,783

64,028,142

47,367

0

3,966,835

-12,182,884

3. Plant and equipment

9,312,904,354

203,168,723

715,599

101,300,155

344,175,828

4. Other equipment, furniture and fixtures

651,388,001

30,074,584

139,878

22,534,198

23,721,594

Total intangible assets

II. Tangible assets 1. Developed plots of land 2. Undeveloped plots of land

5. Prepayments and plant under construction Total tangible assets

1,254,510,446

398,696,794

0

1,263,882

-898,205,455

17,437,827,839

748,005,780

952,654

140,761,999

-2,170,134

34,652,143

35,290,813

0

70,073

0

3,833,589

7,905,749

0

494,599

0

500,234,204

44,443,757

0

309,608

0

57,334,383

23,702,025

0

13,242,096

0

III. Financial assets 1. Shares in affiliated companies (not consolidated) 2. Lendings to affiliated companies (not consolidated) 3. Investments 4. Investments in associated companies 5. Lendings to companies in which shares are held 6. Long-term financial investments 7. Other lendings Total financial assets

Total assets

3,929,419

0

0

0

0

1,331,859,192

171,254,485

1,664

45,180,850

0

13,949,360

5,778,131

0

1,090

0

1,945,792,290

288,374,960

1,664

59,298,315

0

19,875,248,637 1,056,224,758

1,011,417

202,956,586

0

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

12

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN TANGIBLE AND INTANGIBLE ASSETS (1/2) for the 2008 financial year

IN EUR

COST OF ACQUISITION 31.12.2008

ACCUMULATED DEPRECIATION

CARRYING VALUE 31.12.2008

CARRYING VALUE 31.12.2007

WRITE UPS 2008

DEPRECIATION 2008

481,347,865

334,462,426

146,885,439

160,562,399

0

18,526,341

2,724,881

566,213

2,158,668

321,652

0

82,634

I. Intangible assets 1. Licences, industrial property rights and similar rights including associated licences 2. Goodwill 3. Prepayments

26,730,742

0

26,730,742

15,640,546

0

0

510,803,487

335,028,639

175,774,848

176,524,597

0

18,608,976

6,799,736,238

2,608,397,475

4,191,338,763

3,678,843,961

0

139,645,907

47,925,789

0

47,925,789

64,028,142

0

0

3. Plant and equipment

9,759,664,350

6,461,943,533

3,297,720,817

3,018,105,150

0

270,134,240

4. Other equipment, furniture and fixtures

682,789,860

523,301,745

159,488,115

150,760,021

0

40,979,657

753,737,903

1,254,510,446

0

0

Total intangible assets

II. Tangible assets 1. Developed plots of land 2. Undeveloped plots of land

5. Prepayments and plant under construction

753,737,903

0

18,043,854,139

9,593,642,752

1. Shares in affiliated companies (not consolidated)

69,872,884

7,123,525

62,749,358

31,885,525

0

4,356,908

2. Lendings to affiliated companies (not consolidated)

11,244,739

0

11,244,739

3,833,589

0

0

544,368,353

987,628

543,380,724

499,330,230

0

343,263

67,794,311

8,425,179

59,369,133

48,909,204

0

0

3,929,419

3,929,418

1

1

0

0

1,457,934,492

88,137,379

1,369,797,113

1,316,883,450

1,492,030

80,014,709

19,726,401

329,999

19,396,402

13,619,361

0

0

2,174,870,599

108,933,128

2,065,937,471 1,914,461,361 1,492,030

84,714,879

Total tangible assets

8,450,211,387 8,166,247,720

0 450,759,804

III. Financial assets

3. Investments 4. Investments in associated companies 5. Lendings to companies in which shares are held 6. Long-term financial investments 7. Other lendings Total financial assets

Total assets

20,729,528,225 10,037,604,519 10,691,923,706 10,257,233,678 1,492,030 554,083,659

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

13

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2008 A. CORPORATE PROFILE Wiener Stadtwerke (Vienna Public Enterprises) is essentially engaged in the following business activities: Electricity generation, sales and network operation Gas sales and network operation District heating and cooling generation, sales and network operation Energy management Facility management Waste management and incineration Telecommunications Underground, tram and bus service operations Transport services for the disabled Freight traffic Funeral services Cemetery maintenance including cemetery nursery and masonry workshops Holding management Miscellaneous All of the above activities relate almost exclusively to the metropolitan area of Vienna and its immediate surroundings.

Pursuant to Article 252 of the Austrian Business Enterprise Code, the balance sheet date of the consolidated financial statements is that of the parent company. The financial statements of Group companies either fully consolidated or consolidated on a pro rata basis were all, with the exception of the following companies (balance sheet date: 30 September 2008), prepared on the balance sheet date of the parent company (31 December 2008).

Wien Energie GmbH Wienstrom GmbH Wien Energie Gasnetz GmbH Wien Energie Stromnetz GmbH Fernwärme Wien GmbH EnergieComfort Energie- und Gebäudemanagement GmbH WienIT EDV Dienstleistungsgesellschaft mbH WienIT EDV Dienstleistungsgesellschaft mbH & Co KG Wien Energie Vertrieb GmbH & Co KG Energieallianz Austria GmbH Wien Energie Bundesforste Biomasse Kraftwerk GmbH Wien Energie Bundesforste Biomasse Kraftwerk GmbH & Co KG

B. GENERAL INFORMATION Pursuant to Article 244 of the Austrian Business Enterprise Code (ugb), Wiener Stadtwerke Holding AG is obligated to prepare consolidated financial statements for the financial year 2008.

The non-consolidated amounts of income and expenses pertaining to these companies in the periods October – December 2008 and October – December 2007 respectively are set out in the following table: IN TEUR

These consolidated financial statements have been prepared in accordance with the requirements of the Austrian Business Enterprise Code. The first-time consolidation took place on 1 January 1999 – on which date the affiliated and associated companies of the Group were first consolidated. All companies consolidated since this point in time have been consolidated at the point in time of their respective acquisitions.

10–12/2008 10–12/2007

Turnover

861,758

Changes in inventory Other own work capitalised

38

90

10,707

9,356

Other operating income

38,300

29,391

Operating performance

910,803

842,814

Cost of materials

-525,593

-432,585

Personnel expenses

-121,013

-114,807

Depreciation and amortisation

The uniform accounting and valuation methods used in preparing these financial statements are documented in a Group Accounting Guideline.

803,977

Other operating expenses Operating result (EBIT) Financial

result*

Result on ordinary activities

-55,530

-56,189

-161,196

-152,309

48,206

86,924

-25,202

-1,810

23,004

85,114

* Financial result excludes group-internal dividend payments.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

14

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

In the case of financial statements of subsidiaries prepared on the basis of a balance sheet date and period not concurrent with those of the consolidated financial statements, details are to be provided of the accounting procedures for the non-concurrent periods of particular importance to the asset, financial and earnings positions of the Group. This relates primarily to expenditures associated with the purchase of securities. A comparison of the carrying values of securities and the market values of the bank holding the share account reveals a differential amount of eur 61m at 31 December 2008. Applying the moderate lower of cost or market principle, as described under Point C Accounting and Valuation Principles, and an assumed share price development of +1.8 %, the extent of impairment charges expected on 30 September 2009 falls to around eur 27m. This amount has been taken into account in the above table under the position financial result. Price developments in the period between 1 January 2009 and 15 March 2009 make this assumption appear realistic.

An opposite (positive) effect in the amount of approx. eur 21m arises out of the timing differences relating to income. Pursuant to Article 252, Para. 3 of the Austrian Business Enterprise Code, both of these positions have not been taken into account in the Consolidated Profit and Loss Account.

C. ACCOUNTING AND VALUATION PRINCIPLES The financial statements of all consolidated companies have been prepared on the basis of uniform accounting and valuation principles.

260 of the Austrian Business Enterprise Code, on the basis of the valuation methods applied to the consolidated financial statements of the parent company. The principles of individual valuation and a going concern have been applied to the valuation of individual assets and liabilities.

The principle of accounting prudence has been applied, particularly in that only gains realised on or before the balance sheet date are reported as such.

All identifiable risks and impending losses existing or incurred either during the period under review or in earlier periods have been taken into account.

Intangible and tangible assets are recognised at their cost of acquisition or manufacture and, where subject to depreciation or amortisation, are depreciated or amortised applying the straight line method based on standard commercial useful lives. Lowvalue items with acquisition costs below eur 400 are depreciated fully in the year of their acquisition.

The amortisation of goodwill is linear and takes account of the commercial useful life of such assets.

CATEGORY

Useful life (in years)

Intangible assets Licences, industrial property rights, etc.

Electricity supply rights, energy use rights

2-40 or contractual term 30–50

Goodwill

5–15

Software

3–5

Division-specific tangible assets

The consolidated financial statements have been prepared in accordance with the principles of correct accounting and balancing, and in compliance with general accounting standards with the aim of providing a true and fair presentation of the asset, financial and earnings position of the Group. The consolidated profit and loss account has been prepared on the basis of the nature-of-expense method. These consolidated financial statements have been prepared in accordance with the principle of completeness.

The assets and liabilities of consolidated subsidiaries recognised in the Group financial statements have been uniformly valued, in line with Article

Major construction projects (e.g. tunnels, concrete channels, etc.)

40–80

Energy supply equipment

15–25

Supply networks (e.g. power lines, mains, etc.)

5–50

Telecommunication networks

10–30

Vehicles (e.g. trams, buses, etc.)

10–30

Other tangible assets Production and office buildings

25–80

Other technical equipment

2–30

Fixtures, furniture and office equipment

3–30

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

15

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Additions in the first half of any given financial financial period are generally subject to full-year depreciation in the year of their acquisition, while those acquired in the second half of any given financial period are subject to half-year depreciation in the first year.

Unscheduled depreciation in asset value not of a purely temporary nature is taken into account by means of impairment charges.

Own work capitalised is calculated on the basis of the specific costs of manufacture in addition to an appropriate proportion of the production-related material and manufacturing overheads plus a similar proportion of occupational pension and voluntary social costs incurred by the Company. Interest payable on borrowings for the purposes of financing the manufacture of assets is not generally capitalised.

Investment subsidies are carried as accrued liabilities and reversed over the useful life of the respective subsidised assets.

Shares in affiliated companies, as far as these are not consolidated, in addition to other shareholdings, are carried at their cost of acquisition less any impairment charges.

Shares in associated companies are recognised at valuations based on the equity method. This method applies the same valuation methods as applied to fully consolidated companies.

Lendings are carried at the lower of their acquisition costs or cash value on the balance sheet date.

Available-for-sale securities are recognised applying the moderate lower of cost or market principle.

Impairment charges are recognised when these are assumed not to be temporary in nature. The duration of the loss in value is determined on the basis of the extent of the impairment charge.

A write down to a lower market value (including the amount resulting through dividend payments to wstw) takes place if the value of the asset falls

by more than approx. 10 % below the book value.

This procedure takes account of the extraordinary situation of the financial markets in addition to the considerations contained in the current guidelines of the Austrian Financial Reporting and Auditing Committee relating to the valuation of current and non-current financial assets.

The reasons for the assumed recovery in value of impaired assets by less than approx. 10 % lie primarily in the structure of the portfolio, in the long-term returns on investments anticipated in connection with certain classes of assets, and in the fact that dividend payments should only be resumed when the recovery in value is assured.

In cases in which impairment charges are taken, these are recognised applying the principle of prudence and the market value on the balance sheet date. This procedure is applied due to the fact that, in terms of the current levels of volatility and the pessimistic expectations with regard to economic development (at least in 2009), the mitigation of risk is accorded a higher priority than a rapid recovery in asset value.

Inventories are valued at their respective costs of acquisition or manufacture in as far as the underlying prices of these assets are not lower on the balance sheet date, e.g. due to falling stock exchange or market prices.

Manufacturing costs relate solely to direct costs (of materials and wages) and the corresponding proportion of material- and manufacturing-related overheads based on the assumption of operation at full capacity, plus expenses for voluntary social costs and occupational pension contributions. Expenses incurred through general administration work and interest on loans may not be capitalised.

The calculation of costs of acquisition and manufacture for the same classes of assets applies the weighted average cost method or similar methods.

Appropriate impairment charges are recognised for inventories subject to risks or of reduced utility.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

16

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

assigned to work for the Group. This represents a direct obligation in respect of pension contributions.

Pursuant to Section 211, Para. 2 of the Austrian Business Enterprise Code, the Group recognises these direct pension liabilities applying the rules relating to the correct accounting of pension liabilities based on the Austrian Financial Reporting Act (rlg) as defined in an expert report prepared by the Fachsenat für Handelsrecht und Revision of the Institut für Betriebswirtschaft, Steuerrecht und Organisation (part of the Austrian Chamber of Tax Consultants and Certified Accountants – Document: No. 80, kfsrl 2) as amended and supplemented at a sitting of this committee on 5 May 2004.

Receivables and other assets are valued at their respective acquisition costs. Recognisable risks are taken into account by means of appropriate impairment charges.

Purchased co2 emission certificates are carried under the position Other assets and are recognised strictly applying the lower of cost or market principle. Certificates obtained free of charge are not carried in the financial statements.

Available-for-sale securities are carried at the lower of their cost of acquisition or market value on the balance sheet date.

The use of the different accounting principles, in particular due to the adjustment of the parameters and revised calculation methods, gives rise to a due back payment compared to 31 December 2004 in the amount of teur 453,488. An agreement was reached between Wiener Stadtwerke Holding AG and the City of Vienna on this issue on 26 July 2005. In line with this agreement, the back payments due will be spread over a longer period (expected to be 25 years). The balance due and as not as yet recognised in profit/loss is carried as a separate position under prepayments and accrued income.

Untaxed reserves, as defined by Article 205 of the Austrian Business Enterprise Code (ugb), are carried in the financial statements as revenue reserves (in accordance with Article 253, Para. 3, ugb).

Provisions for severance payments and provisions for similar liabilities are calculated applying actuarial principles in accordance with ias 19 (Employee Benefits) on the basis of the projected unit credit method and an assumed discount rate of 5.75 % (prior year: 5.0 %), salary increases of 3 % (prior year: 3 %) and a retirement age of 65 for both male and female personnel.

Provisions for pensions were calculated at 31 December 2008 in accordance with IAS 19 (Employee Benefits) applying the projected unit credit method and the corridor method. The following parameters and assumptions were applied for the calculations:

The Vienna Public Enterprises – Allocation Act (Wiener Stadtwerke – Zuweisungsgesetz), published in the State Law Gazette (lgbi 17/1999), requires that Wiener Stadtwerke reimburses the City of Vienna for pension-related expenses of municipal employees

31.12.2008 IN % Discount rate Salary increase

31.12.2007

ACTIVE

RETIRED

ACTIVE

RETIRED

5.75

5.50

5

4.75

3

0

3

0

1.25

1.25

1

1

Fluctuations

none

none

none

none

Pensionable age (male/female)

65/65

Pension increase

Mortality table

65/65 Pagler & Pagler AVÖ 1999

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

17

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Certain other actuarial methods other than those described above may be applied to calculate provisions for pensions although it should be noted that these relate only to provisions which, either alone or in total, are not significant on the grounds of immateriality. In accordance with transitional arrangements pursuant to Article X, Paras. 3-4 of the Austrian Financial Reporting Act (rlg), a differential amount of teur 31 (prior year: teur 46) was recognised under the position prepayments and accrued income by Fernwärme Wien GmbH. The position other provisions recognises other provisions set up in appropriate amounts applying the principle of accounting prudence. A provision has been set up to account for any shortage of co2 emissions certificates.

Accounts receivable and accounts payable in other currencies are recognised at the exchange rate at which such accounts arose. In the event that the applicable exchange rates on the balance sheet date are lower (in the case of receivables) or higher (in the case of payables), then these positions are to be recognised at the exchange rates prevailing on the balance sheet date unless these positions have been hedged to eliminate currency-based risks.

D. SCOPE OF CONSOLIDATION 1. Consolidated companies The consolidated financial statements of Wiener Stadtwerke Holding AG encompass all of those companies necessary to represent a true and fair picture of the asset, financial and earnings positions of the Group. The scope of consolidation is determined in accordance with Article 247, Para. 1 of the Austrian Business Enterprise Code (ugb). The following table provides an overview of the number of companies consolidated fully, pro rata and based on the equity method.

At 31.12.2007 First consolidated during financial year No longer consolidated At 31.12.2008

FULL CONSOLIDATION

PRO RATA CONSOLIDATION

AT EQUITY CONSOLIDATION

18

2

9

1

–

–

–

–

–

19

2

9

For an overview of companies consolidated fully, pro rata and based on the equity method, please refer to Annex 1 of the Notes to the Consolidated Financial Statements.

Wienstrom GmbH und Wien Energie Gasnetz GmbH, as limited partners, jointly hold a 100 % interest in the assets and results of Wien Energie Vertrieb GmbH & Co KG. Energieallianz Austria GmbH acts as the general partner without a liability deposit. Wien Energie Vertrieb GmbH & Co KG is managed jointly in accordance with the agreements reached relating to Energieallianz Austria GmbH. Pursuant to Article 262, Para. 1 of the Austrian Business Enterprise Code (ugb), Wien Energie Vertrieb GmbH & Co KG is therefore fully consolidated in the financial statements of Wiener Stadtwerke on a pro rata basis in accordance with its share in equity (assets).

Due to the framework agreement concluded between the shareholders of EconGas GmbH, Wien Energie Gasnetz GmbH exercises considerable influence in the commercial and corporate policies of EconGas GmbH. EconGas has therefore been consolidated in these financial statements based on the equity method as an associated company.

A total of 30 subsidiaries (prior year: 27) were not fully consolidated due to the fact that their inclusion was not material to providing a true and fair picture of the assets, financial and earnings positions of the Group.

Those subsidiaries not fully consolidated are generally characterised by low turnover figures. The total assets of these subsidiaries represent less than 3% of the consolidated balance sheet total.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

18

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to Article 249, Para. 1 of the ugb, the company Gemeinnützige Wohnungs- und Siedlungsgesellschaft der Wiener Stadtwerke GmbH was not consolidated.

No foreign subsidiaries have been consolidated in these financial statements and there has therefore been no currency translation of related assets or liabilities.

A list of the Group’s holdings may be obtained directly from the offices of the parent company.

2. Changes in the scope of consolidation during the financial year During the course of the financial year, the company Friedhöfe Wien GmbH was consolidated as a subsidiary of Bestattung Wien GmbH and therefore included within the scope of the consolidated financial statements of the Group for the first time.

E. CONSOLIDATION PRINCIPLES Capital consolidation applies the book value method according to which carrying values are offset against the pro rata share of the equity in the subsidiary at the point in time of their acquisition or first-time consolidation. The positive differential amounts resulting from the consolidation are generally offset against existing reserves in line with Article 261, Para. 1 of the Austrian Business Enterprise Code (ugb). Provisions are set up to cover negative differential amounts provided that losses are expected or, in as far as these may be regarded as realised gains or where expected losses have been incurred, then these are either set up or released as reserves, and recognised in income, in accordance with Article 261, Para. 2 (ugb).

Shares in subsidiaries not held by the Group are recognised under the position Minority interests.

During the consolidation of liabilities, licences, prepayments made, lendings, accounts receivable – trade, other receivables and accrued income are offset against the corresponding liabilities and provisions.

All Group-internal expenses and income are balanced in the course of the expenses and income consolidation of the Group subsidiaries in accordance with Article 257, Para. 1 of the ugb. In the event of Group-internal construction work, the associated revenues are reclassified as own work capitalised.

Temporary results within the Group are recognised in income and eliminated in accordance with the principal of materiality. No elimination of temporary results has been applied to companies valued applying the equity method given that their influence on the overall standing of the Group is immaterial.

Deferred tax assets based on temporary effects, and resulting from the different accounting options available during the preparation of the consolidated financial statements as opposed to the financial statements of the individual subsidiaries, are no longer recognised following a Group-internal consolidated tax agreement effective since 2005. The untaxed reserves (with the exception of investment allowances) recognised in the financial statements of the subsidiaries are, therefore, carried under the position retained earnings without any corresponding deferral of taxes.

The differential amounts resulting from the capital accounting of companies recognised applying the equity method are determined according to the same principles applied to fully consolidated companies.

Wherever possible and material, these valuations are adjusted to correspond to group-wide valuation methods.

These consolidated financial statements are based to a certain extent on estimations and assumptions which have an influence on the values of assets and liabilities, the representation of other obligations on the balance sheet date, and on details of revenues and expenses during the period under review. The actual figures and amounts may deviate from these estimations.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

19

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

F. NOTES TO THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 1. Notes to the Consolidated Balance Sheet a) Fixed assets For details of developments in specific fixed asset positions and a breakdown of depreciation and amortisation by asset type for the financial year 2008, please refer to the table entitled Statement of Changes in Tangible and Intangible Assets in Annex 5.

The land value element of developed plots of land amounts to teur 207,652 (prior year: teur 41,907).

US Cross-border leasing (cbl) transactions For details of the us cbls, please refer to Point F.2.i below.

Lendings

IN EUR

TOTAL 31.12.2008

OF WHICH TERM TO MATURITY ‹ 1 YEAR

Lendings to affiliated companies

11,244,739

0

Lendings to companies in which shares are held

OF WHICH TERM TO MATURITY › 1 YEAR 11,244,739

1

0

1

Other lendings

19,396,402

0

19,396,402

Total

30,641,142

0

30,641,142

TOTAL 31.12.2007

OF WHICH TERM TO MATURITY ‹ 1 YEAR

OF WHICH TERM TO MATURITY › 1 YEAR

3,833,589

0

3,833,589

1

0

1

IN EUR Lendings to affiliated companies Lendings to companies in which shares are held Other lendings

13,619,361

0

13,619,361

Total

17,452,951

0

17,452,951

Non-current financial assets The book and market values of securities at 31 December 2008 are set out in the following table in accordance with Article 237a of the ugb:

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

20

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARKET BOOK VALUE VALUE DIFFERENCE 31.12.2008 31.12.2008* in %

IN EUR WSTW I-VI Shares and investments US lease depot Pension reinsurance Total securities

1,215,998

1,173,701

-3.5

225

345

53.3

148,547

148,547

0.0

5,027

5,027

0.0

1,369,797

1,327,620

-3.1

TOTAL 31.12.2008

OF WHICH TERM TO MATURITY ‹ 1 YEAR

OF WHICH TERM TO MATURITY › 1 YEAR

* The market values at 30.9.2008 have been applied for companies with a balance sheet date of 30.9.2008.

b) Receivables and other assets

IN EUR Accounts receivable – trade

282,743,721

282,102,152

641,570

Accounts receivable – affiliated companies (not consolidated)

6,697,631

3,543,776

3,153,855

Accounts receivable – companies in which shares are held

2,171,670

2,171,670

0

Other receivables and assets

237,904,455

213,938,330

23,966,125

Total

529,517,476 501,755,927

27,761,549

TOTAL 31.12.2007

OF WHICH TERM TO MATURITY ‹ 1 YEAR

OF WHICH TERM TO MATURITY › 1 YEAR

204,754,474

204,604,002

150,472

14,192,684

5,285,590

8,907,094

3,885,666

3,885,666

0

Other receivables and assets

219,779,531

214,584,318

5,195,213

Total

442,612,354 428,359,576

14,252,778

IN EUR Accounts receivable – trade Accounts receivable – affiliated companies (not consolidated) Accounts receivable – companies in which shares are held

The other receivables recognised in 2008 largely relate to investment returns, receivables due from the financial authorities and receivables from leased heating arrangements associated with the retroinstallation of central heating systems.

General valuation adjustments have been made in the amount of teur 16,655 (prior year: teur 17,126).

Specific valuation adjustments for accounts receivable – trade and for other receivables made during the course of the 2008 financial year amounted to teur 31,938 (prior year: teur 28,994).

c) Prepayments and accrued income This position consists primarily of additional amounts transferred to provisions for pensions. d) Equity The capital stock in the amount of teur 500,000 is divided into 6,880,150 shares held by City of Vienna.

The retained earnings also include positive and negative differential amounts arising out of the first-time and subsequent consolidation of Group companies, in addition to untaxed reserves.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

21

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The capital reserves include restricted capital reserves in the amount of teur 94,182. Of the revenue reserves, teur 22,786 are statutory revenue reserves the company is legally required to hold.

The differential amounts of fully consolidated companies recognised in equity at 31 December 2008 are made up as follows: IN TEUR

2008

2007

-4

-4

-239

-239

87,450

87,450

6,868

6,868

-317

-317

126,380

126,380

-1

-1

-676

-676

Wiener Lokalbahnen Verkehrsdienste GmbH

1,276

1,276

Bestattung Wien GmbH

351

351

-186

-186

220,902

220,902

Wienstrom GmbH Wien Energie Gasnetz GmbH Wien Energie Fernwärme Wien GmbH Energiecomfort Energie- und Gebäudemanagement GmbH Wien Energie Bundesforste Biomasse Kraftwerk GmbH & Co KG Wiener Linien GmbH & Co KG Wiener Linien GmbH AG der Wiener Lokalbahnen

Wiener Standwerke Beteiligungsmanagement GmbH Total

e) Provisions Group provisions developed as follows over the course of the period:

IN EUR

BALANCE AT 1.1.2008

CONSUMED/ REVERSED

ADDITIONS

BALANCE AT 31.12.2008

2,164,436,584

-9,708,452

21,366,629

2,176,094,762

43,172,959

-3,249,933

4,483,923

44,406,949

375,249

-375,249

24,108

24,109

Provisions for Pensions Severance payments Taxes Remaining Total

312,206,761

-126,202,730

184,545,198

370,549,229

2,520,191,553

-139,536,363

210,419,858

2,591,075,048

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

22

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Provisions for severance payments For details of the valuation method applied, please refer to the section Accounting and Valuation Principles above.

Provisions for long-service and loyalty bonuses There follows a breakdown of provisions for longservice bonuses: IN TEUR

31.12.2008 31.12.2007

There follows a breakdown of provisions for severance payments:

Cash value of obligations

58,754

59,247

Less differential amounts not recognised in cash

-95

-192

IN TEUR

Net provisions for long-service bonuses

58,659

59,055

Cash value of the obligation

31.12.2008 31.12.2007 44,485

44,045

Less unrealised actuarial losses

0

-731

Realised actuarial gains

0

42

44,485

43,356

Provisions for employee beneďŹ ts (IAS 19) Less differential amounts unrecognised in cash Balance of provisions

-78

-182

44,407

43,174

There follows a breakdown of provisions for loyalty bonuses: IN TEUR

31.12.2008 31.12.2007

Cash value of obligations

14,854

16,024

Less unrealised actuarial losses

0

-1,784

14,854

14,240

-132

-268

14,722

13,972

Sub-total

Provisions for pensions For details of the valuation method applied, please refer to the section Accounting and Valuation Principles above.

Less differential amounts not recognised in cash

There follows a breakdown of provisions for pension payments:

Provisions for taxes Provisions for taxes in the amount of teur 24 (prior year: teur 375) have been set up.

IN TEUR Cash value of pension obligations Less unrealised actuarial losses Provision for pension obligations Less differential amounts unrecognised in cash (carried as accrued income) Net pension obligations

Net provisions for loyalty bonuses

31.12.2008 31.12.2007 2,253,801

2,376,118

-77,705

-211,682

2,176,096

2,164,436

-349,354

-373,034

1,826,742

1,791,402

Other provisions The other provisions mainly take into account obligations in the areas of personnel and environmental aairs, failure to perform maintenance work, not as yet invoiced goods and services, and restoration obligations for properties leased from the City of Vienna and the Republic of Austria.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

23

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

f) Liabilities There follows a breakdown of Group liabilities by term to maturity:

IN EUR

TOTAL 31.12.2008

TERM TO MATURITY ‹ 1 YEAR

TERM TO MATURITY 1-5 YEARS

TERM TO MATURITY › 5 YEARS

Bonds issued

31,776,347

5,133,470

17,204,935

9,437,942

372,940,313

183,579,590

134,342,178

55,018,545

Liabilities due to banks Prepayments received

10,641,320

10,641,320

0

0

431,946,354

429,858,604

1,986,256

101,495

Accounts payable – affiliated companies (not consolidated)

3,468,120

3,468,120

0

0

Accounts payable – companies in which shares are held

1,488,832

1,488,832

0

0

284,411,190

152,206,913

30,727,391

101,476,886

64,189,002

64,189,002

0

0

5,238,623

5,238,623

0

0

Accounts payable – trade

Other liabilities Other liabilities – tax Other liabilities – social security Total

IN EUR Bonds issued Liabilities due to banks Prepayments received

1,206,100,101 855,804,474 184,260,760 166,034,867

TOTAL 31.12.2007

TERM TO MATURITY ‹ 1 YEAR

TERM TO MATURITY 1-5 YEARS

TERM TO MATURITY › 5 YEARS

64,000,462

42,435,133

13,689,445

7,875,884

229,988,544

51,559,420

106,710,584

71,718,540

18,130,270

11,654,942

3,237,664

3,237,664

400,139,504

399,036,292

1,085,812

17,400

Accounts payable – affiliated companies (not consolidated)

3,023,345

3,023,345

0

0

Accounts payable – companies in which shares are held

1,277,395

1,277,395

0

0

269,969,327

152,618,128

11,565,294

105,785,905

53,492,412

53,492,412

0

0

4,198,136

4,198,136

0

0

Accounts payable – trade

Other liabilities Other liabilities – tax Other liabilities – social security Total

1,044,219,395 719,295,203 136,288,799 188,635,393

In 1997 and 1998, Fernwärme Wien Gesellschaft mbH issued bonds with terms of 10 and 15 years respectively. The bonds of Energiecomfort GmbH were issued in 2006 and 2007 with terms until 2016 and 2017 respectively.

In the course of the 2008 financial year, no physical securities or mutual securitisations were issued.

The other liabilities are largely made up of obligations arising out of us cross-border lease transactions entered into by Wiener Linien, liabilities due to the financial authorities, associated with deposits, heating supply rights, and liabilities due to the City of Vienna.

g) Accrued liabilities and deferred income The position Accrued liabilities and deferred income is made up predominantly of investment subsidies granted in conjunction with fixed assets and construction project grants. The granting of these subsidies is dependent on the fulfilment of certain conditions, requiring that latent repayment obligations be set up to cover these subsidies. These accruals are reversed in line with the depreciation of the associated fixed assets purchased.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

24

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

m.b.H, accepts unrestricted obligations for ensuring that e&t Energie Handelsgesellschaft mbH will, in the period of time during which any demands may arise out of these business arrangements, be managed and financed in such a way as to always be able to meet any current or future liabilities in a timely manner. The theoretical liabilities arising out of these letters of comfort on the balance sheet date amounted to teur 296,793 (prior year: teur 238,149).

h) Contingent liabilities At the balance sheet date, the Group recognised contingent liabilities in the amount of teur 1,220,266 (prior year: teur 988,011). These liabilities are offset by contingent assets in the amount of teur 778,472 (prior year: teur 651,952).

The contingent liabilities include us cross-border lease transactions entered into by Wiener Linien in the amount of teur 576,474 (prior year: teur 541,792). These liabilities are offset by means of rights of recourse in the same amount recognised as assets.

For its part, the Wiener Stadtwerke group has issued letters of comfort in the amount of approximately teur 145,001.

A total of 59 (prior year: 44) restricted and unrestricted letters of comfort in favour of its business partners have been issued on behalf of e&t Energie Handelsgesellschaft. Wien Energie GmbH consequently, irreversibly and jointly with another shareholder of e&t Energie Handelsgesellschaft

2. Notes to the consolidated profit and loss account a) Turnover and other operating income Turnover by division: 2008

IN TEUR Electricity

2007

EXTERNAL REVENUES

INTERNAL REVENUES

EXTERNAL REVENUES

INTERNAL REVENUES

1,088,216

333,905

1,250,549

343,218

Gas

355,490

25,368

290,141

20,630

Heat

325,320

72,868

264,267

41,761

Other services

489,697

51,789

151,153

48,724

2,258,722

483,929

1,956,110

454,334

494,605

717

455,615

1,796

62,645

-448

32,012

0

3,450

62,724

3,701

59,294

Energy Transport Funeral services Miscellaneous Intra-segment revenues* Total

-51,650

51,650

-49,681

49,681

2,767,772

598,572

2,397,756

565,105

* The line Intra-segment revenues relates to the internally generated revenues between the energy division and the other divisions listed.

The line Other services listed for the energy division primarily relates to activities in the area of waste and hazardous waste management, telecommunications and facility management.

The position Other operating income includes subsidies received from the City of Vienna relating to the operation of Wiener Linien. All income generated by non-core business activities (e.g. IT services,

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

25

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

advertising space, etc.) is also recognised under this position.

PENSIONS IN TEUR

-206

2,667

b) Personnel expenses The total remuneration received by members of the Board of Management during 2008 amounted to teur 1,353 (prior year: teur 1,342). A total of teur 49 (prior year: teur 49) was paid to members of the Supervisory Board during the same period.

Other employees

170,869

197,760

Total

170,663

200,427

The workforce is made up as follows: 2008

2007 Average

Wage earners

9,785

9,293

Salaried employees

5,319

5,203

15,104

14,496

Total*

* Excluding personnel on paternity leave, national service and trainees.

During the reporting period, a total of 76 (prior year: 63) personnel were employed by Energieallianz Austria GmbH, a company consolidated on a pro rata basis. Wien Energie Vertrieb GmbH & Co KG does not have any direct employees (service agreement).

The expenses for severance payments and pensions can be broken down as follows: SEVERANCE PAYMENTS IN TEUR Board members and senior managers

2008

2007

127

143

Other employees

4,942

6,467

Total

5,069

6,610

Board members and senior managers

2008

2007

The expenses for severance payments and pensions contain both adjustments in the amounts set up as provisions in addition to the severance and pension payments actually made. The expenses for severance payments also include contributions in the amount of teur 1,302 (prior year: teur 871) made to occupational pension funds. c) Depreciation of tangible assets and amortisation of intangible assets For details regarding the depreciation of tangible assets and amortisation of intangible assets by asset type, please refer to Annex 5. d) Other operating expenses The other operating expenses relate predominantly to expenses incurred as a result of servicing work, transportation and taxes as well as advertising and entertainment expenses.

The remaining operating expenses amount to teur 58,329 (prior year: teur 70,377) and consequently represent approx. 12 % of the total of other operating expenses.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

26

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

e) Expenses/income from associated companies The shares in the results of holdings in associated companies consolidated in the financial statements of the Group developed as follows over the course of the financial year:

IN TEUR

BALANCE AT 1.1.2008

ADDITIONS/ PRO RATA RESULT

DIVIDENDS

BALANCE AT 31.12.2008

Teerag Asdag AG

35,638

13,327

-5,889

43,076

EconGas GmbH

9,895

8,303

-5,978

12,220

Other

3,376

1,188

-491

4,073

Total

48,909

22,818

-12,358

59,369

f) Income taxes The Group received net tax revenues of teur 1,632 (prior year: teur 4,841) during the 2008 financial period. This net inflow resulted predominantly from the reallocation of tax assets and liabilities between group companies (Gruppensteuerumlage) in the amount of teur 1,914 (prior year: teur 5,421).

Deferred tax assets in the amount of teur 8,082 were not consumed in line with the corresponding option under Section 198, Para. 10 of the Austrian Business Enterprise Code (ugb). g) Changes in reserves Please refer to the table Consolidated Statement of Changes in Equity in Chapter 1 of the Notes to the Consolidated Financial Statements for an overview of changes in reserves. h) Other financial obligations as defined under Article 266, Para. 2 of the Austrian Business Enterprise Code (UGB) Future obligations arising out of the use of tangible assets not recognised in the consolidated financial statements: IN TEUR

2008

2007

of which relating to next year

130,680

144,201

of which relating to the next 5 years

682,857

696,080

i) US Cross-border leasing (CBL) transactions Given recent developments on the financial markets and the associated rise in the level of interest on the part of readers of annual reports, the details relating to us cross-border lease transactions are explained below in more detail than is usual: In 1990, Wiener Linien GmbH & Co KG entered into us lilo (lease in / lease out) transactions relating to underground trains and trams. This involved leasing the vehicles to a us trust under a so-called head lease. At the same time, Wiener Linien GmbH & Co KG leased the vehicles back from the trust under a sub-lease. The us trust made a leasing prepayment to Wiener Linien GmbH & Co KG, the amount of which was such that two depots (a debt and an equity depot) could be funded to meet the sub-leasing obligations. The inflow of funds in excess of that required by the depots (net cash value advantage) is recognised as an accrual and is reversed over the term of the leasing agreements under the position other interest and similar income.

As a result of Bank Austria Leasing taking over the payment obligations for the borrowed portion of the sub-lease instalments (payment undertaking agreement), the debt depot is balanced in the same amount against the us trust and is therefore not recognised on the balance sheet. However, given that the Company remains liable for the as yet unredeemed portion of the sub-lease obligations, this amount is reported under the position contingent liabilities.

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

27

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The securities held in the equity depot serve to collateralise the remaining sub-lease payments to be made by the Company.

In the financial years 1999, 2001 and 2003, further us lease transactions were concluded in the form of a service contract structure. Given that it was possible to entirely transfer the payment obligations to financial institutions (payment undertakers), the balance sheet only recognises the net inflow of cash as an accrual. As in the case of the earlier transactions, the amount recorded as an accrual is being reversed in line with the term of the lease agreement under the position other interest and similar income.

In the course of the fourth transaction, 20 vehicles owned by Wiener Lokalbahnen AG were included in the transaction under a power of attorney in favour of Wiener Linien, with the latter acting in its own name and on the account of Wiener Lokalbahnen AG (wlb). The contingent liabilities recognised therefore also contain, on a pro-rata basis, WLB interests, irrespective of a subsequent assignment of risks and costs by Wiener Lokalbahnen AG. The transactions concluded in 1998 were subsequently restructured in December 2003. This involved restructuring those tranches concluded with the investor Bank of America (then NationsBank) relating to underground and tram vehicles from a LILO to a service contract structure, whereby an additional net cash value advantage was generated for Wiener Linien GmbH & Co KG. On the initiative of the investor, in 2006 the trusts Fleetbank 1998-1 and -2 linked to the first us lease transaction were terminated prematurely and the relevant liabilities vis-à-vis the investor were settled through the assignment of the us treasury bonds held.

These financial transactions were denominated in usd. Their translation into eur was based on historical exchange rates. The remaining receivables and payables in usd on the balance sheet date are maturity congruent and may be regarded as closed out positions.

Given that a performance risk of Wiener Linien GmbH & Co KG, as the contractual partner, and, as a result of internal agreements, a recourse obligation on the part of Wiener Lokalbahnen AG in the event of the default of the contractual partners, both remain as a result of the assignment of payment obligations to the contractual partners associated with the payment undertaking agreements, current developments related to the global financial market crisis are to be taken into account in the financial statements for the period to 31 December 2008.

With regard to the contractual partner the performance by whom is also covered by a public guarantee obligation, the risk of default may be considered to be extremely low, as a result of which, and based on the assessment of the Company, no need exists to take any impairment charges in the annual accounts.

However, the creditworthiness (rating-based) of contractual partners previously regarded to be impeccable has, in part, deteriorated considerably. The contractual terms prescribe, among other measures, that, in the event of considerable deterioration of ratings, that the depots and payment undertaking agreements are to be exchanged or collateralised.

This occurred in the case of one leasing transaction and made it necessary to provide additional collateral in the form of us government bonds. These securities are pledged to the investor, Bank of America, and are subject to valuation in a foreign currency given that this position was not closed out on the balance sheet date. In the meantime, it has been possible to hedge this position. It has also since been possible to recuperate the foreign exchangebased losses recognised on the balance sheet date.

In the case of another transaction, Wiener Linien GmbH & Co KG was granted an extension of a deadline by the investor for the exchange of the contractual partner or to provide suitable collateral.

Despite the volatility on international financial markets, Wiener Linien GmbH & Co KG and Wiener Lokalbahnen AG assume that the contractual partners will, as in the past, continue to meet their contractual payment obligations and that, therefore, no outflows of cash in excess of those payments made at the time the transaction was concluded are to be ex-

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

28

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

pected. For this reason, no changes were made in the presentation of the financial results and, therefore, neither rights of recourse arising out of the payment undertaking agreement nor the payment obligations still legally binding vis-à-vis the us investors, need to be reported in the financial statements. Due to the remaining existing obligation, however, this position continues to be reported under contingent liabilities.

The costs associated with the premature termination of the second tranche of the third leasing transaction in January 2009 were recognised in the form of a provision.

With regard to the remaining transactions, the higher credit quality risks are taken into account through the setting up of provisions. These relate to the contractual partners (AIG and Swiss RE) who have been awarded a rating of under AA by Standard & Poor’s and for whom no additional collateral is provided in the form of a public guarantee obligation or through the pledging of high-grade (AA) securities in favour of Wiener Linien GmbH & Co KG and Wiener Lokalbahnen AG. The amount of the provision is determined on the basis of the historical probability of default measured using the rating of the contractual partner and the residual term to maturity of the transactions. At 31 December 2008, total payment obligations (discounted future payment obligations) imposed on these contractual partners exist in the amount of approx. teur 144,008, as a result of which provisions in the amount of approx. teur 3,285 were set up in the financial statements to 31 December 2008 and recorded under the financial result.

At the point in time of the preparation of these consolidated financial statements, negotiations are ongoing with investors with a view to terminating further transactions, or tranches thereof, prematurely. Wiener Linien GmbH & Co KG assumes that the costs incurred in the course of terminating these transactions will not exceed the as yet unreserved net cash value advantages currently recorded as accruals, such that it is not necessary to set up further provisions to cover such costs. The costs incurred in 2008 in this context have been recorded as expenses in the current period.

The following positions associated with us lease transactions are reported in the balance sheet: IN TEUR

31.12.2008 31.12.2007

Non-current securities: US lease I, II and R depot

110,667

104,632

Depot to collateralise US lease R

37,880

0

148,547

104,632

7,623

0

110,667

105,380

31,123

36,307

576,474

541,792

Provisions Other liabilities Accruals Deferred cash value advantage from US lease transactions Contingent liabilities = contingent assets

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

29

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

j) Financial instruments There follows a breakdown of the derivative-based financial instruments held by certain Group companies on the balance sheet date: 2008 IN TEUR

NOMINAL VALUE*

CURRENT VALUE**

Contracts purchased

461,857

106,876

Contracts sold

288,396

-39,425

Oil swaps

290,804

19,550

28,115

857

171,930

33,371

Futures purchased Futures sold

j) Other information The Executive Board was made up of the following members during the financial year: Gabriele Payr (Chief Executive Officer) Martin Krajcsir (Vice Chief Executive Officer) Gabriele Domschitz Helmut Miksits

The Supervisory Board was made up of the following members during the financial year: 2007 IN TEUR Contracts purchased Contracts sold Oil swaps Futures purchased Futures sold

NOMINAL VALUE*

CURRENT VALUE**

493,876

8,224

42,789

424

127,622

9,603

23,346

767

204,846

4,706

*

The nominal amount is equivalent to the contractual value (agreed volume x agreed price). ** The current value is equivalent to the market value (fair value – gain/loss).

The contracts refer to electricity supply deals concluded by e&t Energie Handelsgesellschaft mbH. The oil swaps were concluded to limit the costs of primary energy sources.

The futures held on the balance sheet date relate to asset-backed securities in the amount of teur 13,345 (prior year: teur 9,057) recognised under other receivables and unrealised gains (positive variation margins) from futures contracts in the amount of teur 43,040 (prior year: teur 6,877) which are balanced by entries under the position accrued liabilities and deferred income.

Ernst Theimer (Chairman) Richard Neidinger (Vice-Chairman) Günther Schön (Vice-Chairman) Brigitte Jilka Paul Hladik Claudia Kahr Karl Kaiser Günther Koch Stephan Koren Werner Muhm Heinz Kollinger Gerhard Weber Michael Bauer

Vienna, 16. March 2009 The Executive Board

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

30

C0NTACTS

CONTACTS WIENER STADTWERKE HOLDING AG Schottenring 30, 1011 Vienna Telephone: +43 (0)1 531 23-0 Fax: +43 (0)1 531 23-73999 post@wienerstadtwerke.at www.wienerstadtwerke.at AG DER WIENER LOKALBAHNEN Eichenstraße 1, 1120 Vienna Telephone: +43 (0)1 904 44 office@wlb.at www.wlb.at WIEN ENERGIE GMBH Schottenring 30, 1011 Vienna Telephone: +43 (0)1 531 23-73902 Fax: +43 (0)1 531 23-73908 office@wienenergie.at www.wienenergie.at WIENER LINIEN GMBH & CO. KG Erdbergstraße 202, 1031 Vienna Telephone: +43 (0)1 790 9-0 Fax: +43 (0)1 790 9-149 post@wienerlinien.at www.wienerlinien.at BESTATTUNG WIEN GMBH Goldeggasse 19, 1041 Vienna Telephone: +43 (0)1 501 95-0 Fax: +43 (0)1 501 95-4320 direktion@bestattungwien.at www.bestattungwien.at WIENER STADTWERKE BETEILIGUNGSMANAGEMENT GMBH (BMG) Salzgries 19, 1011 Vienna Telephone: +43 (0)1 531 23-74803 Fax: +43 (0)1 531 23-74819 office@bmgwien.at www.bmgwien.at

WIEN IT EDV DIENSTLEISTUNGSGESELLSCHAFT MBH Hetzendorfer Straße 30–32, 1120 Vienna Telephone: +43 (0)1 904 05-0 Fax: +43 (0)1 904 05-1001 office@wienit.at www.wienit.at WIENCOM WERBEBERATUNG GMBH Passauer Platz 7, 1010 Vienna Telephone: +43 (0)1 532 55 40-0 Fax: +43 (0)1 532 55 40-20 contact@wiencom.at www.wiencom.at ENQUIRIES ABOUT THE ANNUAL REPORT geschaeftsbericht@wienerstadtwerke.at PRESS RELATIONS robert.hierhold@wienerstadtwerke.at Telephone: +43 (0)1 531 23-73953

WIENER STADTWERKE CONSOLIDATED FINANCIAL STATEMENTS 2008

31

IMPRINT

IMPRINT PUBLISHED BY Wiener Stadtwerke Holding AG Schottenring 30 1011 Vienna Telephone: +43 (0)1 531 23-0 post@wienerstadtwerke.at www.wienerstadtwerke.at CONCEPT, CONSULTANCY AND DESIGN Kirchhoff Consult AG PHOTOS Peter Rigaud, Vienna TRANSLATION Anglo-Austrian Communications PHOTOGRAPHS OF THE FOLLOWING PERSONNEL ARE INCLUDED IN THIS REPORT Doris Mago (Title image) Marianne Blöch (page 2)

WWW.WIENERSTADTWERKE.AT

Title: Doris Mago, Wiener Stadtwerke